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CH: SECO Consumer Climate
| Actual | Previous | |
| Level | -30 | -30 |
Highlights
The reading for the consumer confidence index was minus 30 in February. While matching the January result, it was an improvement from the minus 33 from a year ago.
Consumers were more upbeat over the economy for the coming 12 months, with the reading improving to minus 31 from minus 34, which is the most optimistic they have been since the minus 20 reading from January of last year.
They are less likely to spend on big ticket items, with the minus 27 result the worst since last June. Concerns about the labor market sharpened, with more consumers indicating the unemployment rate will rose.
At the same time, prices are expected to increase over the coming twelve months, although with a reading of 98, that is below those of just a few months ago when they were above 100. However, with the conflict in the middle east expanding, consumers will no doubt have more concerns about inflation.
Definition
The State Secretariat for Economic Affairs (SECO) compiles a quarterly survey of consumer attitudes on present and expected economic and financial conditions. The survey covers around 1,200 Swiss households and results are synthesised into a single summary consumer climate index that attempts to measure consumer sentiment.
Description
The pattern in consumer attitudes and spending is often a major influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth. Consumer spending accounts for a major portion of the Swiss economy, so investors want to know what consumers are up to and how they might behave in the near future. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. An increasing important element of the survey is the question concerning current buying intentions.